Introduction

Baba Ramdev established the Patanjali Ayurved Limited in 2006 along with
Acharya Balkrishna with the objective of establishing science of Ayurveda in
accordance and coordinating with the latest technology and ancient
wisdom.

Patanjali Ayurved is perhaps the fastest growing fast-moving-consumer

goods firm in India with Annual revenue at more than Rs 5,000 crore.

PAL has a three-tier distribution system consisting of clinics, wellness

centers, and non-medicine outlets to retail 1000+ products.

Patanjali is also selling the products online through E-commerce,

increasing their penetration even further.

Even though Acharya Balkrishna is the primary stakeholder of the company

(92% stake), the main driving force behind Patanjali Ayurved is the
charisma and philosophy of Baba Ramdev.
 Target Audience

PAL's target segment comprises of health conscious people who prefer

value for money natural products. PAL has products targeted at children
(health drinks) and elderly people (some ayurvedic medicines).

Initially the products were targeted at lower and middle income groups but
with the present turnover of close to a billion dollars products have buyers
not only from the lower income and middle income segments but also from
health conscious upper middle and upper income segments.
 Competitive edge
Patanjali has the advantage of being associated with a personality, Baba
Ramdev, a yoga guru with a following of millions who popularizes this brand
through his camps has consistently advertised its products harping on
quality and purity thereby hoping to dispel consumers doubts on that score.
Competitive Pricing : Patanjali products are available at an attractive
discount as compared to their competition. The company sources products
directly from farmers and cuts on middlemen to boost profits. Hence, they
are able to reduce their raw material procurement cost and are able to
produce goods at a much cheaper price.
Patanjali follows a Branded House strategy whereas other companies in
the consumer goods sector like P&G and HUL follow a House of Brands
strategy.
Simple packaging, that gives it a natural look Patanjali sells its products
with a very simple packaging. With a product like Patanjali, where the
message is to promote Ayurveda and Health, simple packaging can be a
very effective way of promotion. With a natural look (especially with leaves
and herbs), consumers get a feeling of health and wellness and they are
attracted to buy the product.
Strong distribution channels: Patanjali uses multiple distribution channels to
cater to the market. Company has a reach of 0.2 million outlets. PAL has a
strong presence in the market through its 1200 chikitsalayas, 2500 arogya
kendras, 7000 open store in villages and 5600 marketing vehicles.
 Strong brand association with health: Patanjali is able to create a brand
perception of health and wellness among the Indian masses, primarily
because of Baba Ramdevs association with the brand who is considered to
be a veteran of yoga. Hence, more people are getting attracted to
Patanjalis products and are re-buying products more frequently.

Patanjali followed a unique word-of-mouth publicity model and the entire

revenue was without any advertising initially. It was because of the brand
loyalty of its customers that the word-of-mouth promotion proved so
successful for the company.

Appeal to rural-urban aspiration and conservatism-driven consumers -

Apart from appealing to the above consumer base, Patanjali also managed
to attract rural-urban aspiration and conservatism-driven consumers by
launching modern consumer household products which promised purity with
goodness, on the lines of major players.
 Other competitors
Direct Competition
Himalaya Herbal Healthcare
Emami
Dabur Honey: Patanjali Ayurveda is providing people with option to buy quality honey at around
30% lesser price than Dabur.
Colgate: Patanjali Ayurveda is preaching how Colgate cheated people in early days. And how
Ayurveda is the best way to treat your gums and your teeth.
Procter and Gamble
Nestle Ltd
HUL (Hindustan Unilever Limited)
The unorganized players include numerous Ayurveda centers, chikitsalayas and shalas which
make their own products for their customers and also sell the same in the local market.

Indirect Competition
Coca-Cola
VLCC
Kaya skin Clinic
Exercise & Fitness products (equipments,accessories like fitness band and protein shakes)
 Brands with their positioning
and taglines
Brands Positionning Tagline/Slogan
Dabur Honey Positioned the personal care products as Celebrate Life
an ayurvedic and herbal usage. To extract
the max benefit of natural product.

Emami Herbal, Natural and organic products for Making people healthy and beautiful
both beauty and health. naturally.
Colgate a germ and cavity fighter. Number 1 recommended by dentist.

Himalaya promise of good health and well-being;

teal green represents proximity to nature,
while the orange is evocative of warmth,
vibrancy and commitment to caring
Nestle Popularly Positioned Products (PPPs ) Good Food, Good Life.
offer these consumers the opportunity to
consume high-quality food products that
provide nutritional value at an affordable
cost.
 Positioning of the Brand
The brand slogan of Patanjali is Prakriti ka Aashirwaad which means
Blessings of Nature. Patanjali is positioned as Natural Products available at
affordable prices.
Swadeshi Make (Made in India) whether it's toothpaste or rice, noodles or
chyavanprash all under one brand, Patanjali.
Also costumers buy Patanjali products with a guilt free conscious with the
view that money of India stays in India.

Patanjali has piggy backed not only the awareness of Baba Ramdev but it
is built on the brand strength, firstly of Yoga and its proponent, Baba
Ramdev, and of Ayurveda.
Followers of yoga, Ayurveda and Baba Ramdev were/are its most ardent
early adopters, and they spread the word to others on the efficacy of the
products.
The brand has also leveraged the momentum generated from large waves
of social sentiment toward anti-corruption, spirituality and Swach Bharat.
The timing of its launch, which whether consciously or not, coincided with a
global trend toward the adoption of Eastern health practices, was a key
driving catalyst in its success.
 Patanjali Revenue Growth

Year Revenues (In crore Rs)

2009-10 163

2010-11 317

2011-12 446

2012-13 850

2013-14 1,200

2014-15 2,006

2015-16 5,000